APARTMENT SURVEY 4 TH QUARTER 2016 DATA RENO/SPARKS METRO AREA PRESENTED BY JOHNSON PERKINS GRIFFIN, LLC

APARTMENT SURVEY 4 TH QUARTER 2016 DATA RENO/SPARKS METRO AREA PRESENTED BY JOHNSON PERKINS GRIFFIN, LLC Copyright 2016 by Johnson Perkins Griffin, LLC All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of Johnson Perkins Griffin, LLC.

TABLE OF CONTENTS STATEMENT OF METHODOLOGY... 1 ECONOMIC OUTLOOK... 2 SUMMARY OF FINDINGS... 4 HISTORICAL RENTAL AND VACANCY RATES BY UNIT TYPE... 5 COMMENTARY... 6 GUIDELINES... 7 MARKET AREAS... 8 MARKET AREA MAP... 9 PROJECTS APPROVED AND/OR UNDER CONSTRUCTION... 10 ABSORPTION... 12 RENT CONCESSIONS... 13 SURVEY RESULTS... 14 OVERALL RENO/SPARKS RENT & VACANCY DATA-ALL UNIT TYPES... 15 STUDIO UNITS... 16 ONE BEDROOM/ONE BATHROOM... 17 TWO BEDROOM/ONE BATHROOM... 18 TWO BEDROOM/TWO BATHROOM... 19 THREE BEDROOM/TWO BATHROOM... 20 TOWNHOUSE UNITS... 21 AREA 1-NORTHWEST RENO... 22 AREA 2-NORTHEAST RENO... 23 AREA 3-WEST SPARKS/NORTH VALLEYS... 24 AREA 4-EAST SPARKS... 25 AREA 5-WEST RENO... 26 AREA 6-SOUTHWEST RENO... 27 AREA 7-BRINKBY/GROVE... 28 AREA 8-AIRPORT... 29 AREA 9-LAKERIDGE... 30 AREA 10-SOUTHEAST RENO... 31 SUMMARY BY UNIT TYPE... 32 SUMMARY BY MARKET AREA... 33 15 PROPERTIES WITH THE HIGHEST AVERAGE RENTS... 34 SUMMARY OF MAJOR APARTMENT PROJECT SALES IN 2016... 35 SURVEY PARTICIPANTS... 36 Apartment Survey 4 th Quarter 2016

SURVEY COMMITTEE Stephen R. Johnson MAI, SREA Reese Perkins, MAI, SRA Scott Q. Griffin, MAI Sarah K. Fye, MBA DATA ACCUMULATION AND ANALYSIS COMPLETED BY Johnson Perkins Griffin, LLC ACKNOWLEDGEMENTS We would like to thank all participating management companies, municipalities, and the Survey Committee for their invaluable contributions to the design and content of this report. SURVEY SPONSORS Johnson Perkins Griffin, LLC Real Estate Appraisers and Consultants 245 East Liberty, Suite 100 Reno, Nevada 89501 (775) 322-1155 FAX (775) 322-1156 Apartment Survey 4 th Quarter 2016

STATEMENT OF METHODOLOGY The information presented in this report was collected and assembled from a combination of original research and secondary sources. This section summarizes the methods used in gathering the data. Sources The survey data is collected on a quarterly basis from participating apartment managers, management companies and owners. All information collected from individual complexes is completely confidential and only aggregate statistics are reported. The information furnished by the survey participants is considered reliable. However, the Survey Committee makes no warranty as to the reliability of the data and assumes no legal responsibility for the use of the data from the survey. Survey Criteria The projects have 80 units or more in the Reno/Sparks service area; Projects reflect market rents. Affordable Housing, Student & Senior Housing Projects are excluded; New projects have reached a stabilized occupancy of at least 90%; The projects have a competitive on-site management program; and A willingness of the on-site manager to participate in the survey. The results of this survey depict the operating conditions of the average of 21,082 units reported. A total of 83 projects were surveyed. We believe the statistics presented here are representative of the overall conditions of the Reno-Sparks Survey Area. Survey Modifications The total apartment projects participating in the survey remained the same at 83 projects, and the total units remained the same at 21,082 units. TOTAL NUMBER OF PROJECTS & UNITS-PRIOR TO CURRENT QUARTER 3 rd Quarter 2016 4 th Quarter 2016 Change Total Projects 83 83 No Change Total Units 21,082 21,082 No Change Apartment Survey 4 th Quarter 2016 1

ECONOMIC OUTLOOK Statewide, the unemployment rate fell to a seasonally-adjusted 5.1 percent in December, down 0.1 of a percentage point from November, the lowest it has been in nine years. Additionally, the Silver State added a seasonally-adjusted 3,400 jobs relative to November. I m pleased with the manner in which Nevada s labor markets closed out the year in 2016, said Governor Brian Sandoval. Job growth continued for the 72nd consecutive month. We ve established a new employment record. The unemployment rate fell from a year ago for the 70th straight month. Wages, small business employment, and the number of employers all stand at record highs. I m committed to our continued momentum of supporting job growth so that every Nevadan is able to find employment. On a year-over-year basis, the unemployment rate in the Silver State is down 1.2 percentage points over December 2015, said Bill Anderson, chief economist for the Research and Analysis Bureau of Nevada s Department of Employment, Training and Rehabilitation. For all of 2016, preliminary estimates suggest that the unemployment rate averaged 5.8 percent. This equates to a decrease of nearly 1 percentage point from 2015 s rate of 6.7 percent. All things considered, Nevada s performance on the jobs front, not just in 2016, but stretching over the entire recovery period, has been impressive, Anderson said. After losing 186,000 jobs off of the pre-recessionary peak during the downturn, the Silver State has added 195,000 jobs since September 2010. Relative to 2015, Nevada gained an additional 32,500 jobs, an increase of 2.6 percent, according to initial estimates. The trade/transportation/utilities sector realized the largest increase in terms of nominal growth during 2016, up 9,000 jobs, an increase of 3.8 percent relative to 2015. Construction was the fastest growing of all the industrial supersectors in terms of percentage growth, up 10.4 percent over 2015, which equates to a gain of 7,200 jobs. Seasonal holiday-related hiring is notable during the final months of every year. This year, initial estimates suggest that those industries in which the bulk of holiday hiring occurs added about 8,000 jobs from September to December, Anderson said. Apartment Survey 4 th Quarter 2016 2

Economic Indicators (Source: Nevada Department of Employment, Training and Rehabilitation Economic Summary October 2016) Apartment Survey 4 th Quarter 2016 3

SUMMARY OF FINDINGS AVERAGE SIZE, AVERAGE RENT & AVERAGE VACANCY RATE BY UNIT TYPE STUDIOS 1 BED/ 1 BATH 2 BED/ 1 BATH 2 BED/ 2 BATH 3 BED/ 2 BATH TOWNHOMES TOTALS Average SF-By Unit Type 405 SF 722 SF 862 SF 1,043 SF 1,273 SF 1,298 SF 890 SF Average Rent-By Unit Type $673 $939 $984 $1,207 $1,382 $1,287 $1,066 Average Rent/SF-By Unit Type $1.66 $1.30 $1.14 $1.16 $1.09 $0.99 $1.20 Indicated Vacancy Rate-By Unit Type 1.92% 2.95% 2.75% 3.02% 3.26% 2.96% 2.93% OVERALL AVERAGE RENT & VACANCY-PRIOR & CURRENT QUARTER 3 rd Quarter 2016 4 th Quarter 2016 Change Average Vacancy 2.24% 2.93% +69 Basis Points Average Rent $1,054 $1,066 +$12 or +1.14% COMPARISON OF RENTAL RATES & VACANCY RATES TO PRIOR QUARTER AVERAGE RENT AVERAGE VACANCY UNIT TYPE 3rd Qtr. 2016 4th Qtr. 2016 Result 3rd Qtr. 2016 4th Qtr. 2016 Result Studio $662 $673 +$11 1.48% 1.92% +0.44% 1 Bedroom/1 Bath $923 $939 +$16 2.95% +0.95% 2 Bedroom/1 Bath $973 $984 +$11 1.41% 2.75% +1.34% 2 Bedroom/2 Bath $1,192 $1,207 +$15 2.79% 3.02% +0.23% 3 Bedroom/2 Bath $1,420 $1,382 -$38 2.75% 3.26% +0.51% Townhouse $1,258 $1,287 +$29 3.33% 2.96% -0.37% TOTALS $1,054 $1,066 +$12 2.24% 2.93% +0.69% RENTAL AND VACANCY RATES BY SUB-MARKET AREA AVERAGE RENT AVERAGE VACANCY Area Sub-Market 3rd Qtr. 2016 4th Qtr. 2016 Result 3rd Qtr. 2016 4th Qtr. 2016 Result 1 Northwest Reno $1,150 $1,173 +$23 2.08% 2.33% +0.25% 2 Northeast Reno $969 $986 +$17 0.53% 1.75% +1.22% 3 W. Sparks/N. Valley $932 $941 +$9 1.32% 2.01% +0.69% 4 East Sparks $1,172 $1,190 +$18 2.96% 3.72% +0.76% 5 West Reno $924 $937 +$13 1.33% 1.78% +0.45% 6 Southwest Reno $970 $980 +$10 3.04% 5.76% +2.72% 7 Brinkby/Grove $770 $773 +$3 1.90% 3.31% +1.41% 8 Airport $855 $861 +$6 1.61% 1.96% +0.35% 9 Lakeridge $1,184 $1,165 -$19 4.31% 5.83% +1.52% 10 Southeast Reno $1,074 $1,085 +$11 2.36% 2.32% -0.04% Overall Reno-Sparks $1,054 $1,066 +$12 2.24% 2.93% +0.69% Apartment Survey 4 th Quarter 2016 4

HISTORICAL RENTAL AND VACANCY RATES BY UNIT TYPE UNIT TYPE Quarter/ Studio 1/1 2/1 2/2 3/2 Townhouse TOTAL Year Avg. Rent Vacancy % Avg. Rent Vacancy % Avg. Rent Vacancy % Avg. Rent Vacancy % Avg. Rent Vacancy % Avg. Rent Vacancy % Avg. Rent Vacancy % Q1-2006 $524 3.47% $733 3.01% $795 3.93% $914 4.40% $1,080 5.20% $1,044 5.70% $848 3.83% Q2-2006 $545 3.47% $732 2.56% $814 3.80% $915 4.26% $1,081 4.58% $1,055 3.42% $857 3.50% Q3-2006 $548 5.04% $739 2.19% $821 3.63% $924 3.55% $1,093 3.76% $1,052 3.13% $863 3.07% Q4-2006 $549 4.68% $743 3.31% $815 4.67% $930 5.90% $1,103 6.10% $1,100 7.41% $873 4.70% Q1-2007 $527 4.32% $745 5.00% $813 7.02% $934 6.99% $1,111 8.36% $1,102 5.98% $872 6.24% Q2-2007 $527 8.99% $750 3.24% $817 6.29% $940 5.38% $1,118 7.46% $1,106 4.27% $876 4.88% Q3-2007 $526 7.19% $754 3.18% $818 6.39% $946 4.72% $1,124 5.45% $1,115 4.84% $881 4.54% Q4-2007 $527 7.14% $754 4.43% $822 7.24% $949 8.02% $1,130 8.06% $1,127 8.12% $885 6.50% Q1-2008 $527 8.58% $756 5.37% $820 8.22% $950 7.73% $1,130 5.79% $1,132 7.28% $886 6.85% Q2-2008 $524 6.34% $752 $814 8.46% $949 6.59% $1,132 6.24% $1,132 13.37% $884 6.83% Q3-2008 $524 5.62% $755 6.93% $813 8.82% $953 7.10% $1,132 7.72% $1,134 7.52% $885 7.35% Q4-2008 $523 5.43% $744 8.70% $798 11.83% $933 9.72% $1,130 10.44% $1,122 10.03% $875 9.63% Q1-2009 $523 7.90% $727 10.08% $776 11.97% $914 11.43% $1,119 11.45% $1,118 10.14% $863 10.87% Q2-2009 $515 8.64% $696 9.76% $753 12.20% $886 11.29% $1,088 13.18% $1,122 13.65% $844 10.93% Q3-2009 $501 9.57% $699 8.15% $741 11.46% $930 9.02% $1,117 7.23% $1,156 8.96% $857 9.08% Q4-2009 8.97% $693 7.74% $728 9.48% $925 8.46% $1,111 10.32% $1,141 9.52% $848 8.54% Q1-2010 $490 10.96% $701 7.40% $734 6.70% $936 8.11% $1,128 10.16% $1,090 10.48% $858 7.87% Q2-2010 $489 10.96% $687 6.70% $725 10.03% $909 7.43% $1,102 8.58% $1,068 9.35% $837 7.79% Q3-2010 $483 7.06% $687 5.68% $721 7.27% $905 6.10% $1,091 6.04% $1,100 6.23% $834 6.18% Q4-2010 $480 7.66% $677 5.57% $711 7.40% $895 8.37% $1,085 9.40% $1,073 7.65% $824 7.16% Q1-2011 $487 10.36% $675 4.86% $716 5.06% $887 6.25% $1,086 6.30% $1,056 4.53% $821 5.64% Q2-2011 $476 7.21% $686 5.22% $738 5.33% $902 5.73% $1,115 5.06% $1,009 6.52% $837 5.51% Q3-2011 $484 4.20% $691 4.76% $744 3.87% $913 6.31% $1,098 9.06% $1,027 6.83% $840 5.38% Q4-2011 $463 6.31% $680 5.61% $756 7.30% $875 6.67% $1,070 8.96% $1,074 7.37% $822 6.56% Q1-2012 $472 3.60% $673 4.25% $752 5.84% $883 6.43% $1,070 9.30% $1,028 7.65% $822 5.59% Q2-2012 $482 5.86% $679 3.89% $758 4.96% $910 6.12% $1,094 7.10% $1,038 7.65% $836 5.13% Q3-2012 $507 4.25% $689 3.59% $757 4.86% $899 5.77% $1,074 7.19% $1,068 7.08% $836 4.83% Q4-2012 $487 8.86% $687 4.37% $757 6.35% $892 5.85% $1,083 6.43% $1,074 9.35% $830 5.60% Q1-2013 $494 7.96% $683 3.81% $759 5.75% $888 5.49% $1,080 6.81% $1,029 8.22% $829 5.11% Q2-2013 $509 7.66% $695 3.50% $770 5.54% $912 4.72% $1,082 6.05% $1,051 7.93% $843 4.65% Q3-2013 $531 4.35% $713 3.18% $780 4.96% $928 4.20% $1,113 5.58% $1,067 4.92% $859 4.05% Q4-2013 $545 2.40% $717 3.81% $785 4.05% $917 4.52% $1,117 5.28% $1,068 3.92% $860 4.12% Q1-2014 $548 3.89% $731 4.03% $795 3.28% $948 3.94% $1,123 3.04% $1,093 5.47% $876 3.83% Q2-2014 $533 2.69% $753 2.51% $764 2.33% $969 2.40% $1,170 1.97% $1,105 1.92% $852 2.41% Q3-2014 $540 1.35% $768 2.16% $796 2.58% $1,023 1.96% $1,189 2.10% $1,106 6.23% $887 2.13% Q4-2014 $555 1.35% $775 3.14% $797 3.90% $968 3.24% $1,176 4.23% $1,096 4.44% $868 3.31% Q1-2015 $565 1.65% $790 2.55% $810 3.11% $997 3.35% $1,209 3.32% $1,107 4.10% $889 2.97% Q2-2015 $562 1.95% $816 2.19% $823 1.88% $1,040 2.38% $1,251 2.85% $1,143 4.44% $920 2.27% Q3-2015 $589 2.99% $837 2.35% $848 2.29% $1,065 3.11% $1,264 2.81% $1,137 2.30% $942 2.67% Q4-2015 $580 2.54% $840 2.85% $854 2.83% $1,066 3.01% $1,263 2.56% $1,159 4.81% $946 2.90% Q1-2016 $639 1.80% $875 2.32% $885 1.96% $1,119 2.46% $1,316 2.30% $1,248 2.59% $990 2.30% Q2-2016 $643 2.25% $904 1.84% $930 1.56% $1,164 2.27% $1,411 1.96% $1,233 2.59% $1,029 1.98% Q3-2016 $662 1.48% $923 $973 1.41% $1,192 2.79% $1,420 2.75% $1,258 3.33% $1,054 2.24% Q4-2016 $673 1.92% $939 2.95% $984 2.75% $1,207 3.02% $1,382 3.26% $1,287 2.96% $1,066 2.93% AVERAGE $531 5.47% $744 4.47% $795 5.69% $957 5.60% $1,147 6.18% $1,106 6.46% $877 5.24% MEDIAN $525 5.24% $733 3.85% $795 5.20% $930 5.75% $1,117 6.08% $1,101 6.38% $862 5.00% LOW $463 1.35% $673 1.84% $711 1.41% $875 1.96% $1,070 1.96% $1,009 1.92% $821 1.98% HIGH $673 10.96% $939 10.08% $984 12.20% $1,207 11.43% $1,420 13.18% $1,287 13.65% $1,066 10.93% Apartment Survey 4 th Quarter 2016 5

COMMENTARY The overall average rental rate for all units surveyed increased by 1.14%, with all unit types, except three bedroom units, experiencing an increase in average rental rates. Nine of the ten submarkets experienced an increase in average rental rates, while one sub-market experienced a decrease in average rental rates. The overall vacancy rate for all units surveyed increased by 69 basis points, with nine of the ten submarkets showing increases in vacancies and one submarket experiencing a slight decrease in average vacancy. Five of the six unit types experienced slight increases in average vacancies, with townhome units showing a slight decrease in average vacancy. Although several projects are under construction, supply within the major apartment projects in the region is expected to remain extremely tight over the coming year. Vacancies are expected to remain extremely low, and rental rates should continue to show increases. A rush to construct new units continues, with several major new projects in the planning stages. Apartment Survey 4 th Quarter 2016 6

GUIDELINES The units reported in the survey are subject to the following conditions: Occupancy rates represent conditions as of the date of survey; Rents utilized in the report represent the base price of an unfurnished apartment; Units with more than one size per unit type were calculated on a weighted average for each unit type Weighted averages were used in all charts to give the most accurate statistics possible. The averages were weighted by the number of units reporting each data type; Vacant units are defined as those units currently available for lease (no contract in place). Apartment Unit Classifications Apartment Type Description Studio Units With One Living Area Plus Bath & Kitchen 1 Bed/1 Bath Units With One Bedroom And 1 Bath Or 1-1/2 Baths 2 Bed/1 Bath Units With 2 Bedrooms, 1 Bath OR 1 Bedroom, Den, 1 Bath 2 Bed/2 Bath Units Have 2 Bedrooms And 2 Baths Or 1-1/2 Baths 3 Bed/2 Bath Units Having 3 Bedrooms And 2 Baths (Some Units Include A 3 rd Bath) Townhouse Units Having 2 Or 3 Bedrooms, 2 Baths OR 2 Bedrooms, Den, 2 Baths Apartment Survey 4 th Quarter 2016 7

MARKET AREAS Area Sub-Market Location 1 Northwest Reno North of Truckee River & West of N. Virginia St. 2 Northeast Reno North of 2 nd St.; West of US-395 & Northtowne Lane; East of N. Virginia St. 3 West Sparks/North Valleys North of the Truckee River; West of Pyramid Way; East of US-395 4 East Sparks North of the Truckee River & East of Pyramid Way 5 West Reno North of Moana Lane; West of Plumas St.; South of Truckee River 6 Southwest Reno South of Truckee River; West of S. Virginia St.; East of Plumas St.; North of Redfield Parkway 7 Brinkby/Grove North of Moana Lane; West of S. Virginia St.; South of Brinkby Ave.; East of Lakeside Dr. & North of Linden St.; West of Kietzke Lane; South of Plumb Lane; East of S. Virginia St. 8 Airport North of Peckham Lane; West of Longley Lane; East of S. Virginia St.; South of 2 nd St. & Truckee River 9 Lakeridge South of Moana Lane and Redfield Parkway; West of S. Virginia St. 10 Southeast Reno South of Truckee River; East of S. Virginia St.& Longley Lane Apartment Survey 4 th Quarter 2016 8

MARKET AREA MAP 3 1 2 4 5 6 9 7 7 8 10 Apartment Survey 4 th Quarter 2016 9

PROJECTS APPROVED AND/OR UNDER CONSTRUCTION According to representatives of Ryder Homes, The Village at Arrow Creek Parkway, a 252-unit Phase II project, is currently under construction. The first building is scheduled to be complete by February 2017. At the end of the 4 th Quarter 2016, approximately 6% of the project had been pre-leased. In the 4 th Quarter of 2016, Tanamera Construction broke ground on Sierra Vista, a 336-unit apartment complex located just north of The Village at Arrowcreek along Arrowcreek Parkway. Square One is a 100-unit apartment project located in downtown Sparks. LandCap Investment Partners and GreenStreet Communities began the renovation of the former Silver Club Hotel in September of 2015. The project involves loft style studio, one and two bedroom units. At the end of the 4 th Quarter of 2016, the project was complete and approximately 66% of the project had been pre-leased. In September 2015, Silverwing Development broke ground on the Fountainhouse Apartments in downtown Sparks. The project includes 236 one and two-bedroom apartments within 10 fourstory buildings. The leasing office and clubhouse opened in May 2016. Move-ins within the first building began in August 2016. At the end of the 4 th Quarter of 2016 five buildings were complete, 28% of the project had been pre-leased and 26% of the property was occupied. The 3 rd Street Flats is a 94-unit apartment project located in downtown Reno. Bentar Development and Basin Street Properties began the renovation of the former Kings Inn in the 4 th Quarter of 2015. The project involves one and two bedroom units. At the end of the 4 th Quarter of 2016, the project was complete, approximately 28% of the project had been pre-leased and 13% of the property was occupied. The chart below summarizes the market rate projects within the Reno-Sparks market with approvals, in planning stages, or under construction. Apartment Survey 4 th Quarter 2016 10

Proposed & Under Construction (Major Apartment Projects Over 80 Units) Projects Under Construction Project Name Units Location Area Status Fountain House Apartments 236 Victorian Plaza Circle at C Street 3 Under Construction Vineyard at the Galleria 210 Sparks Galleria 4 Under Construction Sierra Vista 336 Arrowcreek Parkway 10 Beginning Construction 2016 The Harvest-Phase I 278 Damonte Ranch 10 Under Construction The Village at Arrow Creek Parkway-II 252 Intersection of Arrowcreek Parkway & Wedge Parkway 10 Under Construction Total Units: 1,312 Projects Planned Project Name Units Location Area Status The Villas at Keystone Canyon-Phase II 96 Keystone Avenue & North McCarran Boulevard 1 Planning Stages Sharlands Apartments 312 Southeast Corner Sharlands & Mae Anne 1 Construction Planned for 2017 Confidential 305 Directly West of The Villas at Keystone Canyon 1 Planning Stages Silver Peak Apartments 420 Intersection of Military Road & Lemmon Drive 3 Special Use Permit will Expire March 2019 Vista Rafael Apartments 416 North Virginia Street & Vista Rafael Parkway 3 Planning Stages Confidential 280 Sparks Market 4 Planning Stages LandCap Project 300± Prater Way & Vista Boulevard 4 Planning Stages Lumina-Phase I 312 Pioneer Meadows 4 Planning Stages Lumina-Phase II 240 Pioneer Meadows 4 Planning Stages The Point at the Marina 920 LandCap Project, East of Sparks Marina 4 Entitled for up to 920 Units Waterfront at the Marina 209 Around Existing Parking Garage @ Sparks Marina 4 Beginning Construction 2017 The Bridges 198 Victorian Square 4 Beginning Construction 2017 Silverado Development 96 Wingfield Springs 4 Planning Stages Park Lane-Reno Urban Development 1,200 Previous Park Lane Mall Site 7 Planning Stages Confidential 400± South Reno Market 10 Planning Stages Steamboat Creek 468 Geiger Grade & South Virginia Street 10 Planning Stages Summit Club 584 Mt. Rose Highway 10 Planning Stages The Harvest-Phase II 300 Damonte Ranch 10 Planning Stages Total Units: 7,056 In addition to the above projects, a number of smaller apartment projects, including market rate and tax credit projects, are in the planning stages. A number of land owners are also going through the entitlement process for apartments, in order to sell or develop the properties. Apartment Survey 4 th Quarter 2016 11

ABSORPTION The chart below summarizes the absorption rates of several market apartment projects in the Reno-Sparks area between 2002 and a current date, and includes the recent absorption rates of the Bungalows at Sky Vista-Phase I, The Villas at Keystone Canyon and Edge Water at Virginia Lake. Historical & Current Absorption Rates # of Lease up Dates Absorption Project Name Units Start Stabilized Per Month Sharlands Terrace 304 Mar-00 Jan-02 13.22 Canyon Hills Phase I 256 Jun-01 Jul-02 18.29 The Village at Wildcreek 240 Jul-01 Sep-02 16.00 Aviana at Tuscany 311 Jul-01 Apr-03 14.14 Silver Creek 376 Jan-01 Aug-03 11.75 Villas at D Andrea 256 Apr-02 Dec-03 12.19 Marina Village 240 Oct-04 Oct-06 10.00 Horizons at South Meadows 344 Nov-05 Jan-07 22.93 Caviata at Kiley Ranch 184 Jun-07 Oct-09 6.10 Waterstone at Kiley Ranch 203 Jul-07 Oct-09 7.00 The View Apartments 308 Apr-09 Jan-11 13.33 The Trails at Pioneer Meadows 300 Aug-09 Jul-11 11.78 The Alexander at South Virginia 350 Aug-09 Jul-11 13.87 The Village at Arrowcreek 208 Oct-13 Feb-15 11.56 The Bungalows at Sky Vista-Phase I 338 Mar-14 Nov-15 16.10 The Villas at Keystone Canyon 288 Sep-14 Nov-15 19.20 Edge Water at Virginia Lake 284 May-15 Sep-16 16.71 Apartment Survey 4 th Quarter 2016 12

RENT CONCESSIONS During the 4 th Quarter of 2016 10.84% of the apartment projects in our Survey offered rent concessions, in comparison to 4.82% in the 3 rd Quarter of 2016. Concessions range from discounted deposits to one month free rent with a six or twelve-month lease. The most commonly found rent concessions consist of: One month free rent Discounted deposit Reduced Rent with 6 or 12 month lease The chart below and the graph on the following page summarize the percentage of projects which have offered concessions, and the overall vacancy rate, between 2011 and a current date. It is recognized that an increasing number of apartment projects are utilizing YieldStar, and concessions are not reported separately by the apartment managers. Regional Concession History Month/ % Offering Overall Year Concessions Vacancy % Q1-2011 82.43% 5.64% Q2-2011 76.32% 5.51% Q3-2011 72.37% 5.38% Q4-2011 74.03% 6.56% Q1-2012 71.43% 5.59% Q2-2012 66.23% 5.13% Q3-2012 61.04% 4.83% Q4-2012 66.23% 5.60% Q1-2013 57.14% 5.11% Q2-2013 48.05% 4.65% Q3-2013 37.18% 4.05% Q4-2013 44.87% 4.12% Q1-2014 37.18% 3.83% Q2-2014 32.89% 2.41% Q3-2014 24.36% 2.13% Q4-2014 35.06% 3.31% Q1-2015 35.90% 2.97% Q2-2015 16.67% 2.27% Q3-2015 20.25% 2.67% Q4-2015 14.81% 2.90% Q1-2016 12.35% 2.30% Q2-2016 6.17% 1.98% Q3-2016 4.82% 2.24% Q4-2016 10.84% 2.93% Apartment Survey 4 th Quarter 2016 13

SURVEY RESULTS This section of the report covers survey findings pertaining to the total survey area for the 4 th Quarter of 2016. OVERALL QUARTERLY TRENDS: The graphs in this section illustrate percentage vacant, percentage of rent increases or decreases and average monthly rent per quarter. The following graphs are included in overall trends: Overall Reno/Sparks Averages Overall Trends For Studio Units Overall Trends For 1 Bedroom/1 Bath Units Overall Trends For 2 Bedroom/1Bath Units Overall Trends For 2 Bedroom/2 Bath Units Overall Trends For 3 Bedroom/2 Bath Units Overall Trends For Townhouse Units Average Rent Per Unit Type TRENDS PER MARKET AREA: These graphs illustrate quarterly vacancy percentage and average monthly rent. The sub-market categories are as follows: Area 1-Northwest Reno Area 2-Northeast Reno Area 3-West Sparks/North Valleys Area 4-East Sparks Area 5-West Reno Area 6-Southwest Reno Area 7-Brinkby/Grove Area 8-Airport Area 9-Lakeridge Area 10-Southeast Reno CURRENT SURVEY COMPARISONS: This section of graphs illustrates overall comparisons based on unit type and sub-market categories. These graphs include: Summary By Unit Type Summary By Area 15 Properties With The Highest Average Rents Apartment Survey 4 th Quarter 2016 14

OVERALL RENO/SPARKS RENT & VACANCY DATA-ALL UNIT TYPES 1 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% Average Overall Vacancy Average Overall Rent $942 $946 $920 $887 $889 $876 $859 $860 $868 $822 $836 $836 $843 $852 $830 $829 5.60% 5.11% 5.59%5.13%4.83% 4.65% 4.05%4.12% 3.83% 3.31% 2.97% 2.41% 2.13% 2.27%2.67% 2.90% 2.93% 2.30% 2.24% 1.98% $990 $1,029 $1,054$1,066 $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $650 $550 Overall Reno-Sparks Market Averages-All Unit Types (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 890± Square Feet Average Rent For Units Surveyed $1,066 Per Month Average Rent Per Square Foot For Units Surveyed $1.20 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.93% Apartment Survey 4 th Quarter 2016 15

STUDIO UNITS OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% 8.86% 7.96% 7.66% Average Overall Vacancy Average Overall Rent $639 $643 $662 $589 $580 $565 $562 $555 $545 $548 5.86% $531 $533 $540 $507 $509 $472 $482 $487 $494 4.25% 4.35% 3.89% 3.60% 2.99% 2.69% 2.40% 2.54% 2.25% 1.35%1.35% 1.65%1.95% 1.80% 1.92% 1.48% $673 $650 $550 $450 $400 $350 Overall Reno-Sparks Market Averages-Studio Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 405± Square Feet Average Rent For Units Surveyed $673 Per Month Average Rent Per Square Foot For Units Surveyed $1.66 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 1.92% Apartment Survey 4 th Quarter 2016 16

ONE BEDROOM/ONE BATHROOM OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 10.00% 9.00% Average Overall Vacancy Average Overall Rent $875 $904 $923 $939 $950 $900 8.00% 7.00% 5.00% $673 $679 $689 $687 $683 $695 $713 $717 $731 $753 $768 $775 $790 $816 $837 $840 $850 $800 $750 3.00% 1.00% 4.25% 3.89%3.59% 4.37% 3.81%3.50%3.18% 3.81% 4.03% 3.14% 2.85% 2.95% 2.51% 2.55% 2.16% 2.19% 2.35% 2.32% 1.84% $650 $550 Overall Reno-Sparks Market Averages-One Bedroom/One Bathroom Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 722± Square Feet Average Rent For Units Surveyed $939 Per Month Average Rent Per Square Foot For Units Surveyed $1.30 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.95% Apartment Survey 4 th Quarter 2016 17

TWO BEDROOM/ONE BATHROOM OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% $885 $848 $854 $823 $752 $758 $757 $757 $759 $770 $780 $785 $795 $810 $796 $797 $764 5.84% 6.35% 5.75%5.54% 4.96%4.86% Average Overall Vacancy 4.96% 4.05% 3.28% 2.33% 2.58% Average Overall Rent 3.90% $930 $973 $984 3.11% 2.75% 2.29% 1.88% 2.83%1.96%1.56%1.41% $1,000 $950 $900 $850 $800 $750 $650 $550 $450 Overall Reno-Sparks Market Averages-Two Bedroom/One Bathroom Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 862± Square Feet Average Rent For Units Surveyed $984 Per Month Average Rent Per Square Foot For Units Surveyed $1.14 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.75% Apartment Survey 4 th Quarter 2016 18

TWO BEDROOM/TWO BATHROOM OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 13.00% 1 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% Overall Vacancy Overall Rent $1,040 $1,065$1,066 $1,023 $997 $910 $899 $883 $892 $888 $912 $928 $948 $969 $968 $917 $1,192 $1,207 $1,250 $1,164 $1,200 $1,119 $1,150 6.43% 6.12% $850 5.77%5.85% 5.49% $800 4.72% 4.20% 4.52% $750 3.94% 3.24% 3.35% 2.79% 2.40% 2.38% 3.11%3.01%2.46%2.27% 3.02% $650 1.96% $550 $1,100 $1,050 $1,000 $950 $900 Overall Reno-Sparks Market Averages-Two Bedroom/Two Bathroom Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 1,043± Square Feet Average Rent For Units Surveyed $1,207 Per Month Average Rent Per Square Foot For Units Surveyed $1.16 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.02% Apartment Survey 4 th Quarter 2016 19

THREE BEDROOM/TWO BATHROOM OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 15.00% 1 13.00% 1 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% $1,316 $1,251 $1,264$1,263 $1,170 $1,189 $1,176 $1,209 $1,070 $1,094 $1,074$1,083$1,080$1,082 $1,113$1,117 $1,123 9.30% 7.10%7.19% 6.43% 6.81% 6.05% 5.58% 5.28% Overall Vacancy Overall Rent $1,411$1,420 $1,382 4.23% 3.32% 3.04% 2.85%2.81%2.56%2.30% 2.75% 3.26% 1.97%2.10% 1.96% $1,450 $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $650 $550 Overall Reno-Sparks Market Averages-Three Bedroom/Two Bathroom Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 1,273± Square Feet Average Rent For Units Surveyed $1,382 Per Month Average Rent Per Square Foot For Units Surveyed $1.09 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.26% Apartment Survey 4 th Quarter 2016 20

TOWNHOUSE UNITS OVERALL RENO/SPARKS AVERAGE RENT & VACANCY DATA 13.00% 1 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% $1,159 $1,143 $1,028 $1,038 $1,068 $1,093 $1,074 $1,105 $1,106 $1,096 $1,107 $1,137 $1,067 $1,068 $1,051 $1,029 9.35% 8.22% 7.93% 7.65% 7.65% 7.08% 4.92% 3.92% Overall Vacancy 5.47% 1.92% 6.23% Overall Rent 4.44% 4.10% 4.44% 2.30% 4.81% $1,248 $1,233 $1,258 $1,287 3.33% 2.96% 2.59% 2.59% $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $650 $550 $450 Overall Reno-Sparks Market Averages-Townhouse Units (Based Upon Units Surveyed) 4 th Quarter 2016 Overall Category Reno-Sparks Averages Average Square Feet Per Unit Surveyed 1,298± Square Feet Average Rent For Units Surveyed $1,287 Per Month Average Rent Per Square Foot For Units Surveyed $0.99 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.96% Apartment Survey 4 th Quarter 2016 21

AREA 1-NORTHWEST RENO AVERAGE RENT & VACANCY DATA Overall Vacancy Overall Rent 7.00% $1,140 $1,150 $1,173 $1,200 $1,150 5.00% $879 $901 $908 $905 $911 $933 $938 $921 $905 $899 4.44% 4.56% 3.98% 3.69% 3.66% 3.66% 3.79% $923 $902 $934 $978 $1,011$1,015 $1,083 $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 3.00% 3.13% 2.72% 3.13% 2.86% $650 1.60% 1.58% 2.41% 2.33% 2.19% 2.08% 1.96% 1.66% 1.76% $550 $450 1.00% $400 Northwest Reno Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 15 Projects Total Units Surveyed 4,030 Units Average Square Feet Per Unit Surveyed 906± Square Feet Average Rent For Units Surveyed $1,173 Per Month Average Rent Per Square Foot For Units Surveyed $1.29 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.33% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 22

AREA 2-NORTHEAST RENO AVERAGE RENT & VACANCY DATA 13.00% Average Overall Vacancy Average Overall Rent $969 $986 $1,000 1 $930 $950 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% $785 $770 4.53% 4.18% $834 5.94% $753 $746 $761 6.69%6.76% 7.07% $795 4.41% $814 3.38% 2.96% $832 $831 $825 $805 2.35% 2.51% $830 $854 $879 $865 $895 3.27% 2.89%2.81% 2.20% 2.13% 1.60% 1.60% 1.75% $900 $850 $800 $750 $650 $550 1.00% 0.00% 0.53% $450 $400 Northeast Reno Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 6 Projects Total Units Surveyed 1,316 Units Average Square Feet Per Unit Surveyed 853± Square Feet Average Rent For Units Surveyed $986 Per Month Average Rent Per Square Foot For Units Surveyed $1.16 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 1.75% Number of Projects Offering Concessions As Of Date Surveyed 1 Project Apartment Survey 4 th Quarter 2016 23

AREA 3-WEST SPARKS/NORTH VALLEYS AVERAGE RENT & VACANCY DATA 1 Average Overall Vacancy Average Overall Rent $932 $941 $950 11.00% 10.00% $842 $866 $907 $900 $850 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% $795 $802 $778 $754 $754 $755 $762 $769 $706 $716 $728 $720 $719 $727 $740 6.75% 5.56% 3.81% 5.42% 5.08% 4.67% 4.08% 4.30%4.27% 3.34% 2.37% 1.85% 1.26% 2.97% 2.60% 2.35% 1.24% 2.03% 1.32% 2.01% $800 $750 $650 $550 $450 West Sparks/North Valleys Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 13 Projects Total Units Surveyed 3,034 Units Average Square Feet Per Unit Surveyed 861± Square Feet Average Rent For Units Surveyed $941 Per Month Average Rent Per Square Foot For Units Surveyed $1.09 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.01% Number of Projects Offering Concessions As Of Date Surveyed 5 Projects Apartment Survey 4 th Quarter 2016 24

AREA 4-EAST SPARKS AVERAGE RENT & VACANCY DATA 10.00% Average Overall Vacancy Average Overall Rent $1,176 $1,172 $1,190 $1,200 9.00% 8.00% 7.00% $975 6.45% $989 $952 $952 $942 $999 $991 $986 $1,010 $953 $975 $982 $993 $1,047 $1,047 $1,019 $1,135 $1,150 $1,100 $1,050 $1,000 $950 5.00% 3.00% 1.00% 5.59% 5.71% 5.32% 5.18% 4.71% 4.77% 4.23% 3.99% 4.08% 3.93% 3.72% 2.81% 2.69% 2.65% 2.84% 2.90% 2.96% 2.17% 2.02% $900 $850 $800 $750 $650 $550 East Sparks Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 13 Projects Total Units Surveyed 3,551 Units Average Square Feet Per Unit Surveyed 963± Square Feet Average Rent For Units Surveyed $1,190 Per Month Average Rent Per Square Foot For Units Surveyed $1.24 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.72% Number of Projects Offering Concessions As Of Date Surveyed 1 Project Apartment Survey 4 th Quarter 2016 25

AREA 5-WEST RENO AVERAGE RENT & VACANCY DATA 8.00% Average Overall Vacancy Average Overall Rent $924 $937 $950 7.00% 5.00% 3.00% 1.00% 0.00% $856 $867 $818 $824 $825 $778 $787 $790 $801 $747 $755 $751 $752 $758 $764 $765 $765 $757 3.56% 3.11% 2.67%2.67% 2.67% 2.67% 2.22% 2.22%2.22% 1.33%1.33% 1.33%1.33% 0.44% 0.44% 0.44% 0.00% 1.78% 1.78% 1.33% $900 $850 $800 $750 $650 $550 West Reno Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 2 Projects Total Units Surveyed 225 Units Average Square Feet Per Unit Surveyed 870± Square Feet Average Rent For Units Surveyed $937 Per Month Average Rent Per Square Foot For Units Surveyed $1.08 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 1.78% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 26

AREA 6-SOUTHWEST RENO AVERAGE RENT & VACANCY DATA 13.00% 1 Average Overall Vacancy Average Overall Rent $970 $980 $1,000 $950 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% 0.00% $769 $749 $738 $738 $690 $695 $706 $723 $725 $714 $696 4.24% 5.07% 3.52% 4.96% 5.69% 4.76% 2.69% 4.24% 4.45% $843 $851 $818 $806 9.20% $779 $786 $785 3.83% 3.72% 3.41% 2.90% 3.21% 7.86% 6.62% 0.00% 3.04% 5.76% $900 $850 $800 $750 $650 $550 $450 $400 Southwest Reno Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 5 Projects Total Units Surveyed 1,251 Units Average Square Feet Per Unit Surveyed 841± Square Feet Average Rent For Units Surveyed $980 Per Month Average Rent Per Square Foot For Units Surveyed $1.17 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 5.76% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 27

AREA 7-BRINKBY/GROVE AVERAGE RENT & VACANCY DATA Average Overall Vacancy Average Overall Rent 1 15.00% 1 $727 $723 $722 $752 $770 $773 $800 $750 13.00% 1 11.00% $646 $668 $663 $624 $651 $674 $686 $686 $650 10.00% 9.00% 8.00% 7.00% $592 $601 $577 8.04% $611 $597 $585 8.11% 7.99% 7.01% 7.21% 7.76% $550 5.00% 3.00% 5.91% 5.68% 5.08% 4.98% 4.55% 4.41% 3.84% 3.93% 3.64% 4.02% 5.55% 3.25% 3.31% 1.90% $450 $400 1.00% $350 Brinkby/Grove Area Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 7 Projects Total Units Surveyed 1,209 Units Average Square Feet Per Unit Surveyed 803± Square Feet Average Rent For Units Surveyed $773 Per Month Average Rent Per Square Foot For Units Surveyed $0.96 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.31% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 28

AREA 8-AIRPORT AVERAGE RENT & VACANCY DATA 1 11.00% 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% $714 $712 $722 $711 $716 9.11% 8.21% 8.21% 7.68% 6.61% $725 Average Overall Vacancy $733 $736 4.64% 4.64% 4.11% $750 3.04% $730 1.79% 1.25% Average Overall Rent $748 $746 $752 3.39% $788 $792 $799 1.43% 1.43% 1.25% 2.32% $825 $827 $855 $861 1.96% 1.61% 1.43% 1.25% $900 $850 $800 $750 $650 $550 $450 $400 $350 $300 Airport Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 4 Projects Total Units Surveyed 560 Units Average Square Feet Per Unit Surveyed 869± Square Feet Average Rent For Units Surveyed $861 Per Month Average Rent Per Square Foot For Units Surveyed $0.99 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 1.96% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 29

AREA 9-LAKERIDGE AVERAGE RENT & VACANCY DATA Average Overall Vacancy Average Overall Rent 10.00% $1,184 $1,165 $1,200 9.00% 8.00% 7.00% $924 $938 $958 $933 $918 $918 $944 $954 $992 $940 $959 $945 $942 $1,094 $1,055 $1,020 $1,031 $1,021 $1,150 $1,100 $1,050 $1,000 $950 $900 5.00% 3.00% 1.00% 4.60% 4.35% 4.14% 3.77% 3.12% 2.03% 3.12% 3.05% 2.83% 1.45% 2.32% 2.48% 1.92% 1.28% 2.56% 3.59% 2.08% 1.68% 4.31% 5.83% $850 $800 $750 $650 $550 $450 $400 Lakeridge Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 5 Projects Total Units Surveyed 1,252 Units Average Square Feet Per Unit Surveyed 927± Square Feet Average Rent For Units Surveyed $1,165 Per Month Average Rent Per Square Foot For Units Surveyed $1.26 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 5.83% Number of Projects Offering Concessions As Of Date Surveyed 0 Projects Apartment Survey 4 th Quarter 2016 30

AREA 10-SOUTHEAST RENO AVERAGE RENT & VACANCY DATA 10.00% 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% Average Overall Vacancy Average Overall Rent $1,074 $1,085 $1,055 $1,045 $988 $972 $975 $963 $944 $931 $905 $902 $862 $868 $877 $886 $867 $857 6.25% 6.43% 6.50% $898 $875 5.69% 5.17% 5.24% 5.04% 4.41% 3.89% 3.28% 2.64% 2.49% 1.98% 2.16% 2.36% 2.32% 1.46% 1.59% 1.68% 1.74% $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $650 $550 $450 Southeast Reno Submarket Averages (Based Upon Units Surveyed) Category 4 th Quarter 2016 Data Total Projects Surveyed 13 Projects Total Units Surveyed 4,654 Units Average Square Feet Per Unit Surveyed 879± Square Feet Average Rent For Units Surveyed $1,085 Per Month Average Rent Per Square Foot For Units Surveyed $1.23 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 2.32% Number of Projects Offering Concessions As Of Date Surveyed 2 Projects Apartment Survey 4 th Quarter 2016 31

SUMMARY BY UNIT TYPE AVERAGE RENT & VACANCY DATA 9.00% 8.00% 7.00% 5.00% 3.00% 1.00% Average Overall Vacancy Average Overall Rent $1,382 $1,287 $1,207 $1,066 $984 $939 $673 3.26% 2.95% 3.02% 2.75% 2.96% 2.93% 1.92% Studio 1/1 2/1 2/2 3/2 Townhome TOTAL $1,450 $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $650 $550 $450 $400 Data By Unit Type (Based Upon Units Surveyed) STUDIOS 1 BED/ 1 BATH 2 BED/ 1 BATH 2 BED/ 2 BATH 3 BED/ 2 BATH TOWNHOMES TOTALS Average SF-By Unit Type 405 SF 722 SF 862 SF 1,043 SF 1,273 SF 1,298 SF 890 SF Average Rent-By Unit Type $673 $939 $984 $1,207 $1,382 $1,287 $1,066 Average Rent/SF-By Unit Type $1.66 $1.30 $1.14 $1.16 $1.09 $0.99 $1.20 Indicated Vacancy Rate-By Unit Type 1.92% 2.95% 2.75% 3.02% 3.26% 2.96% 2.93% Apartment Survey 4 th Quarter 2016 32

SUMMARY BY MARKET AREA AVERAGE RENT & VACANCY DATA Average Overall Vacancy Average Overall Rent 1 11.00% $1,173 $1,190 $1,165 $1,250 $1,200 10.00% 9.00% $1,085 $1,066 $1,150 $1,100 $1,050 AVERAGE OVERALL VACANCY 8.00% 7.00% 5.00% 3.00% 2.33% $986 1.75% $941 2.01% 3.72% $937 1.78% $980 5.76% $773 3.31% $861 1.96% 5.83% 2.32% 2.93% $1,000 $950 $900 $850 $800 $750 $650 AVERAGE OVERALL RENT 1.00% $550 0.00% 1 2 3 4 5 6 7 8 9 10 OVERALL MARKET AREA Data By Market Area (Based Upon Units Surveyed) Area Sub-Market Average Rent 4 th Qtr. 2016 Average Vacancy 4 th Qtr. 2016 1 Northwest Reno $1,173 2.33% 2 Northeast Reno $986 1.75% 3 W. Sparks/N. Valley $941 2.01% 4 East Sparks $1,190 3.72% 5 West Reno $937 1.78% 6 Southwest Reno $980 5.76% 7 Brinkby/Grove $773 3.31% 8 Airport $861 1.96% 9 Lakeridge $1,165 5.83% 10 Southeast Reno $1,085 2.32% Overall Reno-Sparks $1,066 2.93% Apartment Survey 4 th Quarter 2016 33

15 PROPERTIES WITH THE HIGHEST AVERAGE RENTS AVERAGE RENT & VACANCY DATA SUMMARY BY UNIT TYPE Average Overall Vacancy Average Overall Rent 30.00% $1,800 28.00% $1,641 $1,637 $1,700 2 $1,600 2 2 20.00% 18.00% 1 1 1 10.00% 8.00% $1,190 $1,293 $1,468 18.42% $1,385 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 4.39% 5.08% 3.98% 3.67% 4.26% 0.00% N/A Studio 1/1 2/1 2/2 3/2 Townhome TOTAL $400 Data By Unit Type (Based Upon 15 Properties With The Highest Average Rents) STUDIOS 1 BED/1 BATH 2 BED/1 BATH 2 BED/2 BATH 3 BED/2 BATH TOWNHOME TOTALS Total Number of Units-By Unit Type N/A 1,481 Units 197 Units 2,360 Units 409 Units 38 Units 4,485 Units Average SF-By Unit Type N/A 799 SF 886 SF 1,146 SF 1,429 SF 1,264 SF 1,047 SF Average Rent-By Unit Type N/A $1,190 $1,293 $1,468 $1,641 $1,637 $1,385 Average Rent/SF-By Unit Type N/A $1.49 $1.46 $1.28 $1.15 $1.30 $1.32 Indicated Vacancy Rate-By Unit Type N/A 4.39% 5.08% 3.98% 3.67% 18.42% 4.26% Apartment Survey 4 th Quarter 2016 34

SUMMARY OF MAJOR APARTMENT PROJECT SALES IN 2016 2016 Sales of Market Rate Projects Over 100 Units Project Name Submarket Recording Date Sale Price # of Units Sale Price Per Unit Bristol Bay East Sparks (Area 4) 2/4/2016 $35,450,000 264 $134,280 Willowbrook Southwest Reno (Area 6) 6/14/2016 $14,748,000 184 $80,152 Resort at Tanamera Southeast Reno (Area 10) 6/17/2016 $18,000,000 103 $174,757 Lakeridge East* Lakeridge (Area 9) 7/15/2016 $42,562,000 310 $137,297 Alder Creek Villas Airport (Area 8) 7/20/2016 $12,500,000 213 $58,685 Reflections at the Marina East Sparks (Area 4) 8/31/2016 $25,350,000 240 $105,625 Marina Gardens East Sparks (Area 4) 9/26/2016 $14,250,000 200 $71,250 The Park at Idlewild West Reno (Area 5) 10/13/2016 $10,250,000 113 $90,708 Hidden Oaks Village** West Sparks (Area 3) 11/2/2016 $9,150,000 112 $81,696 The Lodge at McCarran Ranch Lakeridge (Area 9) 11/18/2016 $21,500,000 176 $122,159 Marina Village East Sparks (Area 4) 12/15/2016 $35,000,000 240 $145,833 Skyline Canyon Lakeridge (Area 9) 12/15/2016 $28,500,000 204 $139,706 1100 Place Apartments West Sparks (Area 3) 12/22/2016 $15,500,000 230 $67,391 *Lakeridge East was an REO Sale to Private Party. **Hidden Oaks was an affordable project at the time of sale, but the new owners are converting it to a market rate project. The chart above depicts the major market rate apartment project sales in the Reno-Sparks Market (over 100 units) in 2016. Apartment Survey 4 th Quarter 2016 35

SURVEY PARTICIPANTS Special thanks to the following apartment complexes for their continued and reliable support: Project Name Aviana at Tuscany Spring Villas Townhomes Club Ambassador The Trails at Pioneer Meadows Manzanita Gate The Villas at D Andrea Montebello at Summit Ridge Waterstone at Kiley Ranch Northwind Apartments Willow Creek Villas Sharlands Terrace The Park at Idlewild Shoreline Plaza Waters Edge Apartments Silver Ridge Apartments Edge Water at Virginia Lake The Boulders Lakeview Apartments The Villas at Keystone Canyon Plumas Gardens Truckee River Terrace Sundance West Vista Ridge Apartments Willowbrook Apartments Vizcaya Hilltop Apartments Ala Moana Apartments Westcreek Apartments Century Park Apartments Westridge Apartments Palace Apartments El Chaparral Regency Park Apartments Green Leaf Pines Roselake Apartments Northtowne Summit Sherwood Forest Reno Vista Apartments Southwest Village Riverwood Apartments Balfour Place The View Apartments Brooktree Apartments 1100 Place Kirman Gardens Lansdowne House The Meadows II Sandpebble Aspen Ridge Sierra Point Apartments Lakeridge East Apartments Sierra Sage Apartments Redfield Ridge Sierra View Apartments Skyline Canyon Sierra Woods The Lodge at McCarran Ranch Silver Lake Apartments Bristle Pointe Sky Vista Commons Creekside Apartments Spanish Oaks Horizons at South Meadows Stonegate Apartments Meadowood Apartments The Bungalows at Sky Vista Rosewood Park The Village at Wildcreek The Alexander at South Virginia Canyon Vista Apartments The Element Caviata at Kiley Ranch The Enclave Eastland Hills The Village at Arrowcreek High Rock 5300 The Village at Iron Blossom Marina Garden Apartments Village of the Pines Marina Village Vintage at South Meadows Park Vista Woodside Village Reflections at the Marina Apartment Survey 4 th Quarter 2016 36